US start-up Virgin America recorded a
near $35 million net loss in the three months ended September 30, a period
during which the carrier was operating for less than two months.
In a required “Form 41” filing to
the US DOT’s Bureau of
Transportation Statistics, the San Francisco-based operator reports that revenue
of $16 million did not offset more than $51 million in expenses for the quarter.
Start-up costs are being cited by
the carrier as the driver behind its loss. A Virgin America
spokeswoman notes the “incredibly high overhead” in launching a new operation.
low-fare but high-service carrier, Virgin America sought for years to launch US domestic services but faced strong opposition from those
claiming its ownership structure did not meet US laws and concerns that UK entrepreneur
Richard Branson’s Virgin Group
had undue influence. Virgin America agreed to revise its funding
and management structures. In May the new entrant secured final DOT approval to
On August 8, the airline inaugurated
service from New York JFK and Los Angeles to its home base of San Francisco
It currently operates a fleet of 11 Airbus A320 family aircraft, plus one